1. Command Economies

3. Though voluntary communal ownership has Scriptural precedent for believers it must be done honestly and out of love for one another; the fact that such ownership created problems and is never recommended in the Epistles is doubtless significant.
Acts 2:44-45
Acts 5:1-11

4. Values common good public welfare economic authority
economic cooperation
economic control
economic equality
equality of income
focus on capital goods rather than consumer goods

5. The least you need to know:
also known as a command, planned, socialist or communist economy
an organized system of production and consumption according to some central authority
Greed finds its way into the system through hoarding, corruption, and the Black Market

7. Features of a Command Economy
See “Big Economic Theory Sheets”
Questions and Commandments
Public Enterprise Economy Chart
Compare and Contrast Chart
Play Wendy’s Commercial

8. Scarcity
How is scarcity dealt with in a command economy? Discuss

9. Economic Questions Answered
What goods and services should be produced?
A: What the state needs, what consumers need, what consumers want
2) How should goods and services be produced?
A: State sends publicly owned enterprises specific quotas and directives for production.
3) How should the goods and services be distributed?
A: Who ever the state decides needs them, focus on equality
4) Who answers these questions?
A: The state in the name of the people as a collective whole

11. Case Study: Agriculture
Command Economy
Centrally planned government intervention Private enterprise
marketing boards which impose crop controls and quotas limit production
government inspection of food
government subsidies to help farmers compete internationally
government negotiated sales of production e.g. wheat to other countries e.g. Russia, China, India
Market Economy
supply and demand governs much of the market
high degree of competition from within Canada and around the world

13. Case Study: North vs. South Korea

14. Marx and Engels Karl Marx (1818 - 1883) father of communism
Friedrich Engels ( ) main intellectual partner

15. How Marx thought change would come about (dialectical materialism)
Primitive communalism ||
Slavery
Feudalism or Rule by the Nobility
The upper class of rich people, who took the profits and controlled the government of the county, would be overthrown by

16. Capitalism
The bourgeoisie, the middle class (small businessmen, shopkeepers, etc) would rule society for a while; then be overthrown by ||
Socialism
The proletariat or working class establish a dictatorship to control every aspect of society and move it towards ...

17. Utopian Communism
Everyone works freely for the good of everyone else and does not try to gain more than the next person

20. Types of Communism
Utopian Socialism – aim is to create a perfect society (never has been one!)
Revolutionary Socialism – based on the belief that you need to used violence in order to create an equal society (Lenin’s Marxism)
Evolutionary Socialism – the belief that a more equal, socialist society could be brought about by peaceful means (Democratic Socialism)

21. The Ideal Marxist Society
Governing Values:
All the people - food, shelter, health, physical, psychological needs
A circle, all equality
Economic Planning:
Elected representatives=>info about needs=>production=>distribution to meet needs
Abolished: (1) private property (2) profit motive (3) crime

22. Result:  communism creates a society where all interests and people are treated equally, as opposed to capitalism which creates a society where the interests of the rich capitalist bourgeoisie, exploit the interests of the poor proletariat.

23. Arguments for a Socialist State
Reduce instability by controlling inflation and recessions
Providing rapid growth through forced concentration of resources
Reducing human and natural waste
Overcome inequalities of income (all receive basic necessities)

24. Arguments against Socialism
Creates a large unwieldy bureaucracy
Camouflages instability but does not correct it
Restricts growth, innovation, and quality of goods because of slow decision making and lack of profit motive
Promotes waste through bad decision making and corruption
Concentrates political power and wealth
Lack of consumer goods

25. co-authored by Marx and Engels Class according to Marxism
Communist Manifesto
co-authored by Marx and Engels
Class according to Marxism
society made up of two classes hostile to each other:
bourgeoisie - upper class, landowners, capitalists, bankers, industrialists
proletariat - worker, farmer, poor

26. Das Kapital
mostly written by Marx (completed by Engels after his death), explains theory of scientific socialism
Scientific Socialism (dialectical materialism)
basic motive of men:  to gain as much economically as possible (materialistic)

27. to understand history, one must understand the economic forces that motivate men i.e. wars, religious movements, social change all occur in order to satisfy the economic interests of those who are involved
class struggle results from this basic motive:  a clash of interests between bourgeois owners and the proletarian workers over making economic gains
the bourgeoisie try to make as much profit as possible, resist demands made by the proletariat
capitalism is the economic system of the bourgeoisie; they control the economy because they own the means of production e.g. the factories
the proletariat are to carry out the revolutionary overthrow of the government through the use of force

28. Stage of socialism (the stage the USSR achieved)
public ownership of the means of production e.g. state owned factories, banks, industries
production is geared to meet basic human needs e.g. industrial production geared toward providing food, clothing and shelter (the necessities of life), not makeup, cigarettes (the luxuries produced only to encourage consumption in capitalist societies)

29. V05 Commercial - Chinese School
What part of the system are they lampooning?

30. rational central planning is followed
capitalist laws of supply and demand are thrown out
all production is carefully planned, carried out for a specific social purpose
dictatorship of the proletariat is established to make sure
capitalism does not return
principles of socialism are carried out

31. Stage of communism
not yet achieved in this world, exists as a theory only, no practical example
after all private ownership ends, there will be no need for political power
all forms of the state or government would wither away
society would be classless, without recognized leaders or an elite

32. people would live by one golden rule:
the state would be replaced by a cooperative free association of people
people would live by one golden rule:
to each according to his needs, from each according to his abilities
everyone would contribute to their fullest for the common good
no one's needs in society would be left unsatisfied

34. Leninism revised Marx's ideas in several significant ways
Lenin felt it was not necessary for societies to go through the stage of capitalism first; societies could skip that stage going from an aristocracy to socialism (a revision of dialectical materialism)

35. Lenin followed this revision of Marxist thought when he led the revolution in aristocratic Russia and established a socialist government
a vanguard, or an elite group, was needed to lead the proletariat during the stage of socialism
Lenin created the Communist (Bolshevik) Party in Russia to serve that purpose during the Revolution of 1917